How You Can Ensure Your Parents are Insured the Right Way
With age several health-related problems crop up for many people. It becomes imperative for sons and daughters to take care of their parents in their old age.
If you have been looking for health insurance schemes lately for your parents, you have probably seen a wide range of insurance policies available in the market. There are different insurance plans designed for different age groups, including young people, senior citizens, etc. While there are insurance schemes available for the elderly in their 50s or 60s, policies are also available for super senior citizens. Certain policies cover the entire family, including the parents, spouse, and children. There are several options available in the market.
However, choosing the right policy for the right age group is very important. Also, one must check the benefits for the insured persons, as there are many hidden clauses, difficult for common people to understand.
While health insurance coverage for parents is offered by many employers to their salaried employees under the group scheme, it may not meet one’s requirement. Most group insurance plans offer a family floater cover of ₹ 2-3 lakh. Also, not all companies offer coverage to employees’ parents under the group scheme. Hence, it is always best to opt for an insurance policy personally considering this scenario. Select a policy that not only expands the coverage value but provides peace of mind in case of emergencies.
If you wish to choose an insurance plan for your elderly parents, you have to put some extra effort into getting better coverage for them whenever you need it.
Time is money
The sooner you buy health insurance for your parents, the better it is for your financial planning and peace of mind. Planning for parent’s health insurance is recommended when they are still considered younger because increased age results in higher premium value and restricts the coverage for several diseases.
In the last few years, insurance policy buying rates for the elderly have increased substantially, as people have understood the value of health insurance, and healthcare costs are increasing rapidly. The sooner you opt for a policy for your parents, the lower the premium value will be, and better will be the medical coverage they get against diseases.
Choosing the right plan
A wide range of health insurance policies is available in the market from different insurance companies, which can confuse buyers. It is important to choose a health insurance plan for your parents that offers maximum coverage and minimum exclusions. Also, while choosing an insurance policy, you need to consider the illnesses, surgeries, and critical health-related complexities your parents may undergo in the future.
According to experts, it is always better to opt for an insurance policy that offers a higher sum assured. It is advisable to go for a coverage amount of ₹10 lakh and ₹20 lakh for each insured person, depending on the city they live in. Before buying a policy, you should check and compare all the options available in the market to determine which policy offers better coverage and minimum exclusion.
Single or floater
Before buying a plan, you have to decide whether you want a single plan or a floater policy. A single policy covers a single person as insured. Family floater policies provide health coverage to the entire family, with a certain limit that can be used by one or multiple members until the maximum threshold is reached.
For senior citizens, the risk of coverage usage is higher than others. This is because they are more vulnerable to health-related complexities due to their advanced age and the higher risk elements involved. Hence, it is better to have a separate insurance policy for your parents instead of adding them to the family floater policy. This will insulate the family members from each other in terms of the risk of spending the whole coverage amount for one/certain persons.
If your parents are suffering from a pre-existing illness when you buy an insurance plan for them, you should check the policy for exclusions of pre-existing diseases. The plan may exclude the disease permanently or include it after a mandatory waiting period that usually ranges between two and four years.
If your aged parents need hospitalization during the waiting period of the insurance policy, you will have to bear the medical expenses, as these expenses will not be covered by the policy.
Claim settlement ratio
Many policy buyers ignore the claim settlement ratio while opting for a health insurance plan. But it is an important factor that one should consider while looking for the right insurance policy.
As the name suggests, the claim settlement ratio of a health insurance plan indicates the number of claims paid to its customers by an insurance company against the total claims made by the insured. Usually, this information is available in the public disclosures on the insurance company’s websites. While many of us often take a friend’s or relatives’ advice when choosing the right policy, remember that their cases might not be the same as yours.